Zhejiang Jinggong restructures governance, transfers supervisory duties to audit committee

Zhejiang Jinggong Science & Technology held its Ninth Board of Directors' Tenth Meeting on October 13, 2025, approving the abolition of its Supervisory Board and related amendments to the Articles of Association (AOA) to transfer supervisory duties to the Audit Committee. This restructuring aims to streamline governance, with revised AOA effective upon shareholder approval. Concurrently, the company adopted and amended 29 governance policies, including those for investor relations, risk investment, and related-party transactions, with 10 of these requiring shareholder approval.

Among the approvals, the board sanctioned a guarantee for its wholly-owned subsidiary, Zhejiang Jinggong Leading Technology, providing a financing guarantee of up to 100,000,000 yuan for three years. This guarantee is deemed to meet the subsidiary's operational funding needs and support its sustainable development. The company's total external guarantee limit, including this new approval, is 120,000,000 yuan, representing 51.59% of its net assets as of December 31, 2024. The board believes this guarantee carries minimal risk.

Additionally, the board approved an engineering construction related-party transaction where Zhejiang Jinggong Carbon Materials Technology entrusted Zhejiang Jinggong Construction Engineering Co., Ltd., a company controlled by actual controller Mr. Fang Chaoyang, to undertake Phase II factory construction. The contract amount is estimated at 7,000,000 yuan. This transaction, approved by independent directors and the board with related parties abstaining, is considered a normal business operation, priced at fair market value, and is essential for the high-performance fiber project's industrialization.